IMF Projects 5.5 Percent Growth Rate for Ethiopia in 2014

(Addis Fortune) - Following a year of strong growth in 2012 the near-term outlook for Ethiopia remains broadly positive, with growth projected to accelerate modestly to around 5.5pc in 2014, according to International Monetary Fund's (IMF) Regional Economic Outlook published last week.

Last year, the IMF said Ethiopia's economy is expected to maintain a growth rate of seven percent in 2012/2013, which was below the official estimates of 11.4pc.

The report also reveals that Africa's inflation will decline further to below six percent by end of 2014, reflecting the expectation of moderating non-oil commodity prices and maintenance of appropriate monetary policy.

The Central Statistics Agency (CSA) announced two weeks ago that Ethiopia's year-on-year inflation rate dropped to 7.6pc in March 2013, from a revised 10.9pc in February, owing to slower rise in the price of food.

The outlook, however, is conditional on the implementation of sound macroeconomic policies, although the necessary policy mix differs across countries, according to the report.

The report also shows that economic growth in sub-Saharan Africa remained strong in 2012, with regional gross domestic product (GDP) increasing by five percent indicating that growth was particularly strong among oil exporters and low-income countries, while middle-income countries with closer ties to Europe saw a deceleration.